Memecoins are rising as intraday trading ignites a surge in many assets as US inflation declines. Cryptocurrency prices have increased due to the Consumer Price Index data, which saw monthly inflation figures drop to 0.3%.
This indicates that core inflation has dropped to levels seen in 2021, suggesting future interest rate reductions. Following their recent upswing, the S&P 500 and the NASDAQ Composite Index reached record highs in the stock market. Memecoins gain much from lower rates since they encourage investors to transfer money to riskier investments.
Memecoins Indicate a Comeback
Memecoins, along with other leading cryptocurrency assets, saw a severe decline due to unfavorable macroeconomic conditions. While new meme coins experienced inflows, certain assets experienced double-digit losses. While the overall cryptocurrency market cap increased by 6.20% during the same time period, the memecoin market cap increased by 8.8%.
Solana meme coins have gained 11.8% as an asset class, while tokens with a dog theme have increased by 8.6%. Dogecoin (DOGE), the market leader, is up 5.8% today, extending its weekly gains of more than 8%. Bulls in Dogecoin have predicted that the asset will rise to $1 due to a general bull market in cryptocurrencies.
The item has higher trading volumes and is currently trading at $0.1548. With a market capitalization of $22.3 billion, DOGE has $1.48 billion in trading volumes. In the past 24 hours, Shiba Inu (SHIB) has increased 9.8%, while weekly flows have increased 11.7%. Bullish upticks in the asset have occurred as on-chain factors have recovered. The market capitalization increased to $14.8 billion, with trading volumes above $906 million.
Is It Going to Last?
Memecoin prices have surged in response to a better market mood following improved CPI data. Now that inflation is dropping, investors are more willing to put money into riskier assets, which will help cryptocurrencies.
Bulls predict that the Federal Reserve’s decision to lower interest rates will lead to a long run. Rate cuts are anticipated by the majority of traditional institutions as early as September. Crypto laws and the run-up to the US presidential election are two other factors that could influence the asset’s price.
